LAKSHMI TANUJA SUGGUNA,VIJAYAWADA V. INCOME TAX OFFICER, WARD-3(5), VIJAYAWADA

ITA 182/VIZ/2024

AI Insights

The case involves Lakshmi Tanuja Sugguna, who appealed against the orders of the Income Tax Officer and the Commissioner of Income Tax (Appeals), Gurugram. The primary contention was the ex-parte orders passed under section 144 of the Income Tax Act, 1961, which were upheld by the CIT(A) without adequate opportunity for the assessee to present her case. The assessee was alleged to have earned capital gains from the sale of immovable property, which she did not report in her income tax returns for the assessment year 2012-13. The Tribunal found that despite multiple opportunities provided by the AO and CIT(A), the assessee failed to comply, leading to the decision to remit the case back to the AO for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 46545 (ITAT-VISAKHAPATNAM)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Opportunity of being heard; Capital Gains; Principle of natural justice
• Section: 148; 144; 142(1); 250

Judgement Text

"आयकर अपीलीय अधिकरण, धिशाखापटणम पीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM “SMC” BENCH, VISAKHAPATNAM श्री धिजय पाल राि, उपाध्यक्ष, एिं श्री एस बालाक ृष्णन, लेखा सदस्य क े समक्ष BEFORE SHRI VIJAY PAL RAO, HON’BLE VICE PRESIDENT & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अपीलसं./I.T.A.No.182/VIZ/2024 (निर्धारणवर्ा / Assessment Year: 2012-13) Lakshmi Tanuja Sugguna Flat No. 1, 3rd Floor D.No. 21-11/3-3A Sai Baba Colony, 3rd Line Madhura Nagar, Vijayawada – 520011 Andhra Pradesh [PAN: BORPS8667B] v. Income Tax Officer – Ward – 3(5) C.R. Buildings, Vijayawada Andhra Pradesh (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) करदाता का प्रतततितित्व/ Assessee Represented by : Shri C. Subrahmanyam, AR राजस्व का प्रतततितित्व/ Department Represented by : Dr.Aparna Villuri, Sr.AR सुिवाई समाप्त होिे की ततति/ Date of Conclusion of Hearing : 07.01.2025 घोर्णध की तधरीख/Date of Pronouncement : 28.01.2025 आदेश /O R D E R PER SHRI S BALAKRISHNAN, ACCOUNTANT MEMBER: 1. This appeal is filed by the assessee against the order of Learned Commissioner of Income Tax (Appeals)/Addl/JCIT(A)-1, Gurugram [hereinafter in short “Ld.CIT(A)”] vide DIN & Order No. I.T.A. No. 182/VIZ/2024 Lakshmi Tanuja Sugguna Page No. 2 ITBA/APL/S/250/2023-24/1061729761(1) dated 29.02.2024 arising out of order passed Under section 144 of Income Tax Act, 1961 (in short ‘Act’) dated 05.12.2019 for the A.Y.2012-13. 2. Briefly stated facts of the case are that, assessee is an individual and has not filed return of income for the assessment year under consideration. Ld.Assessing Officer [hereinafter in short “Ld. AO\"] has received information that the assessee has sold immovable property vide sale document No.5060/2011 dated 01.08.2011 of SRO, Machilipatnam Krishna District along with six others during the A.Y. 2012-13 for a total consideration of Rs.99,70,400/- out of which the share of the assessee works out to Rs.14,24,340/-(99,70,400/7) and the assessee is liable for capital gains in her hands. Thereafter, since the assessee has not filed any return of income and declared income on capital gains, Ld. AO issued notice under section 148 of the Act on 29.03.2019 with the prior permission of the concerned authorities. Subsequently, notices under section 142(1) of the Act were issued on 30.08.2019, 07.11.2019 & 21.11.2019 calling for filing of return of income and also certain information. In response, assessee failed to furnish either return of income or information called for. Further, Ld.AO issued show-cause notice on 21.11.2019 asking the assessee as to why Rs.14,24,340/- cannot be treated as income from capital gains. In response, assessee has not filed any reply. Therefore, Ld. AO proceeded to complete the assessment to the best of I.T.A. No. 182/VIZ/2024 Lakshmi Tanuja Sugguna Page No. 3 judgement under section 144 of the Act and determined income of the assessee at Rs.14,24,340/- and raised demand of Rs.8,05,510/-. 3. On being aggrieved, assessee preferred an appeal before Ld. CIT(A) but the assessee even after receipt of the hearing notices on various dates did not file any supporting documents onher contentions as per the grounds of appeal raised by the assessee. Therefore, the Ld. CIT(A) disposed of the appeal based on the merits available on record. 4. On being aggrieved, assessee preferred an appeal before the Tribunal and raised following grounds of appeal: - “1. That under the facts and circumstances of the case the order passedu/s 144 of the IT Act dt: 17.09.2021 that was upheld by the Ld.CIT(A) NFAC vide order passed u/s 250 of the IT Act dt: 29.02.2024is not in accordance with facts of the case and provisions of law. 2. The Ld. CIT(A) disposed of the appeal ex-parte without granting a reasonable opportunity to the assessee, thereby violating the principles of natural justice. 3. The disposal of the appeal in limine by the Ld. CIT(A) is against the provisions of Section 250(6) of the Income Tax Act. 4. The Ld. CIT(A) overlooked the assessee's plea & statement of factswherein, the assessee submitted that there was no sale transactioneffected by the assessee, as erroneously understood by the AO,causing for issue of notice u/s 148 of the IT Act and completion of theassessment thereto. 5. For these and such other grounds, that may be urged at the time ofhearing of subject appeal, the appellant prays that the orders of theLearned CIT(Appeals) u/s 250 of the Act are to be set aside.” I.T.A. No. 182/VIZ/2024 Lakshmi Tanuja Sugguna Page No. 4 5. At the outset, Ld. Authorised Representative [hereinafter “Ld.AR”] submitted that Ld. AO and Ld.CIT(A) passed exparte order without providing adequate opportunity of being heard to the assessee, therefore, considering additions/disallowance made by the Ld. AO, Ld.AR pleaded that the matter may be remitted back to the file of the Ld.AO. 6. On the other hand, Ld. Departmental Representative [hereinafter in short “Ld. DR”] relied on the order of the Ld.CIT(A) and submitted that assessee has not utilized the opportunity provided by Ld.CIT(A). Therefore, the order passed by Ld. CIT(A) is exparte order and she pleaded to confirm the orders passed by the Revenue Authorities. 7. We have heard both the sidesand perused the material available on record. On a perusal of the assessment order as well as Ld.CIT(A) order, it is observed that eventhough the Ld. AO as well as Ld.CIT(A) provided opportunity on several occasions, assessee could not appear nor complied to the notices issued. Considering the submissions of the Ld. AR and totality of facts and keeping in view the additions / disallowance made by the Assessing Officer, in the interest of providing substantial justice, we are of the opinion that assessee should be given one more opportunity of being heard. Therefore, considering the facts and circumstances of the case and in order to meet the principles of natural justice, we are of the view that it is a fit case to remit the I.T.A. No. 182/VIZ/2024 Lakshmi Tanuja Sugguna Page No. 5 matter back to the file of the Ld. AO for fresh consideration and the assessee is directed to cooperate with the proceedings before the Ld. AO. Thus, the grounds raised by the assessee are allowed for statistical purposes. 8. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 28th January, 2025. Sd/- (धिजय पाल राि) (VIJAY PAL RAO) उपाध्यक्ष/VICE PRESIDENT Sd/- (एसबालाक ृष्णन) (S. BALAKRISHNAN) लेखासदस्य/ACCOUNTANT MEMBER Dated :. 28.01.2025 Giridhar, Sr.PS आदेशकीप्रनतनलनपअग्रेनर्त/ Copy of the order forwarded to :- 1. निर्धाररती/ The Assessee : Lakshmi Tanuja Sugguna Flat No. 1, 3rd Floor D.No. 21-11/3-3A Sai Baba Colony, 3rd Line Madhura Nagar, Vijayawada – 520011 Andhra Pradesh 2. रधजस्व/ The Revenue : Income Tax Officer – Ward – 3(5) C.R. Buildings, Vijayawada Andhra Pradesh 3. The Principal Commissioner of Income Tax 4. नवभधगीयप्रनतनिनर्, आयकरअपीलीयअनर्करण, नवशधखधपटणम /DR,ITAT, Visakhapatnam 5. The Commissioner of Income Tax 6. गधर्ाफ़धईल / Guard file //True Copy// आदेशधिुसधर / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam "